CPA told to straighten records

CEBU, Philippines -  The Commission on Audit told the Cebu Port Authority to restore in their books of accounts the P24.2 million in receivables that its officials had illegally written off the past few years despite not having the power to do this.

 According to the state auditors there is no single provision in Republic Act 7621, which enumerates the powers and functions of the Cebu Port Commission that expressly provide such power to write off doubtful accounts.

 COA maintained that it has the sole prerogative to compromise liabilities to the government as clearly spelled out in Section 36 of Presidential Decree 1445 or the Government Auditing Code of the Philippines.

 The members of the Cebu Port Commission have claimed that the decision to write off doubtful accounts was purely a business matter, meaning they have the legal personality to act on it.

 The subject receivables amounting to more than P24 million represents valid claims arising from past transactions and were taken in the CPA’s books of accounts based on the prevailing government accounting instructions at the time incurred.

 The state auditors have claimed that it is therefore clear that these accounts are subject to COA’s settlement and the write-off of which must conform to the provisions of law and procedures laid down by the Commission on Audit.

 They said the removal of these amounts from the CPA’s financial statements is therefore unauthorized. It cannot be considered a purely business matter for the members of the CPA commission.

 COA reiterated that the CPA should restore the accounts and if warranted, to write-off the amount, it should be made in accordance with the law.

 The state auditors have showed concern about the state of CPA’s financial situation because it only has P32.9 million in cash on hands and in the bank as of last December, although it has some collectibles.

 The CPA’s financial statements showed that the port authority had P249 million in 2004 but it dropped to P155 million in 2005, the following year it went back to P204 million but again went down to P75 million in 2007.

 Despite the CPA’s dropped financial resources, the port commissioners still allowed P2,163,940 to be spent for the granting additional health benefits to its officials and employees even if COA told them that it is highly questionable and ordered them to stop the practice.

 CPA officials also failed to collect its share from the pilotage fees by the pilot’s association amounting to P376,844 and another P14.6 million from the port dues of Hinigaran Realty Development Corp. due to the CPA for using the port facility formerly used by Atlas Fertilizer. — Rene U. Borromeo/BRP   (THE FREEMAN)